[JPMorgan: Strategy Faces Risk of Being Removed from Index, Potentially Leading to Billions in Outflows] Odaily Planet Daily News - JPMorgan warned in a report that if Strategy is excluded from major indices, it could result in liquidity loss, increased financing costs, and reduced attractiveness to investors. If MSCI proceeds with the exclusion, it could lead to outflows of up to $2.8 billion. Currently, passive funds associated with the company account for nearly $9 billion in market exposure. MSCI is expected to make a decision regarding index inclusion by January 15. Strategy's stock price has dropped more than 60% since hitting a record high last November. Strategy's mNAV (the ratio of enterprise value to Bitcoin holdings) has fallen to just above 1.1. Strategy still holds nearly 650,000 Bitcoins. In a statement on October 10, MSCI said it is consulting market participants, with some suggesting that digital asset reserve companies may be more akin to investment funds that do not qualify for index inclusion. MSCI has proposed excluding companies with digital asset holdings accounting for 50% or more of total assets from MSCI indices.